Dare to Dream Big
For many reasons, 2020 is a year we're all happy to have in the rear-view mirror. It was a painful year on several levels, and for many, 2021 won't start any better than 2020 ended. The path forward, however, has many reasons to be hopeful.
Some have predicted a "wave of foreclosures" in 2021 because many homeowners have taken advantage of mortgage forbearance programs and deferred their mortgage payments. The theory is that when these programs come to an end, owners will still not be able to make payments, and their house will fall into foreclosure. This theory's problem is that rising home values have provided a significant amount of equity. So if owners cannot refinance or work out another arrangement with their lender, the next best option would be to sell the home and pay off the mortgage. Letting the home fall into foreclosure would be their worst option, making a wave of foreclosures unlikely.
Perhaps surprisingly, real estate has proven resilient in the face of so much uncertainty. Meager interest rates have supported this resilience by keeping monthly payments affordable, even for ever-more expensive homes. Low-interest rates also provide a path to homeownership for many more people who can now afford to buy instead of rent.
If you're in the market for a new home, you're aware of how quickly homes sell once they come to market. The number of homes available for sale is at record lows. We'll see additional inventory now that the holidays are over and we look ahead to spring but make no mistake; a seller's market is likely to continue this year.COVID prompted many to move for a variety of reasons. Some needed more space for their newly work-from-home family. Others wanted to move out of higher-population condo buildings into single-family homes. And that's just those that are moving within Florida. With our world-class beaches, balmy winters, and local attractions, it's not surprising that hundreds of thousands of people are moving to Florida each year. What do these newly-minted Floridians have in common? They all need a place to live.
So dream big. Set ambitious goals. We're excited about what 2021 holds in store for our clients and community. If there's any way we can help you meet your real estate goals this year, stop in or email [email protected]. We're always here to help you plan a path to success!
Happy New Year,